Core Insights - The high-end hotel dining industry in China is undergoing unprecedented adjustments, with average revenue share for mid-to-high-end hotels dropping from 35% in 2023 to 28% in 2024, and dining utilization rates falling below 40% [2][4] - The street economy is growing at an annual rate of over 12%, with expectations to exceed 60 trillion yuan by 2025, where dining consumption will account for 60% to 65%, becoming a core driver [2][4] - The traditional model of high-end hotels relying solely on space for high premiums is being challenged, shifting towards meeting the demands of the street economy [2][4] Industry Trends - The revenue of Yonghe Platinum Hotel's dining segment has decreased by over 51% compared to 2019, with a 14% decline compared to 2024 [4] - The night economy, also referred to as the street economy, is characterized by a demand for quality and cost-effectiveness, which has been overlooked by mid-to-high-end dining [4][6] - The restaurant industry's boundaries are dissolving, with new models emerging that combine dining with retail and entertainment, emphasizing the need for efficiency and value creation [7] Strategic Shifts - The transition from scale expansion to value cultivation is evident, where high-quality development is not synonymous with high premiums, but rather with precise alignment of core capabilities with mass consumption [6][7] - Companies must break down internal barriers to unleash strong self-rescue capabilities, as external policy impacts are merely catalysts for industry reshuffling [6] - The future of the restaurant industry requires a focus on quality over scale, and a shift from price competition to value competition, embracing digital transformation [7]